Natural Gas Price Analysis for August 16, 2017

Natural gas prices were unable to hold on to gains made early in the session.  This comes despite today’s NOAA forecast that shows that the weather is expected to be warmer than normal over the next 2-weeks, which should drive up cooling demand during the latter part of the summer.  Traders await Thursday’s inventory report from the Department of Energy.

Momentum is Neutral

Prices appear to be forming a short term bull flag pattern which is a pause that refreshes higher.  Support is seen near the 10-day moving average at 2.87. Resistance is seen near the August highs at 3.02. Momentum is turning neutral as the MACD (moving average convergence divergence) histogram prints in the black with a flattening trajectory which points to consolidation. The RSI (relative strength index) hit resistance which reflects a pause in positive momentum.